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CRM Through Process and Quality Improvement
CRM Through Process and Quality Improvement
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1.
1 INTRODUCTION
Customer Relationship Management mainly used to create a personalize, one to one
experience that will give the individual customer a sense of being cared for, thus opening up new
marketing opportunities based on the preference of the customer. The emergence of the internet
heralded a new opportunity for customer relationship building which helps to improve our
quality of services for our customers. For one thing, search engines made it easier for customers
to find online customers and interact with them. In fact with the help of advancement of
technology, internet is an environment of zero latency, offering real time information and often
on demand service delivery. This study focus on analyzing CRM process mainly to identify the
development of customer strategy of target laundry and dry cleaning customers of mywash.in
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1.
marketing opportunities based on the preference of the customer. This study focus on analyzing
CRM process mainly to identify the development of customer strategy of target laundry and dry
cleaning customers of mywash.in. The objectives of the study is to Study the CRM techniques
and find ways to improve the techniques which is following in mywash.in, Study the customer
service and support of mywash.in in Bengaluru, improve channel management and to develop
the service quality of mywash.in, study the customer retention rate of mywash.in, Measure the
supply chain and logistics function of collecting materials from customers and to Analyze the
sustainable relationship with the customers of mywash.in. This research is descriptive in nature
which comprises of 110 customers of mywash.in.
This study adopts survey method through preparing questionnaire. Findings states that
40% of respondents get affected due to tiny holes in clothes, 41% of respondents return clothes
due to defective washing from mywash.in, 41% of respondents are highly satisfied with the
services of mywash.in. It is clear that there is a defective in quality of clothes received from
mywash.in. Hence, it is clear that clothes received as per schedule by mywash.in.
Suggestions states that Mywash.in focuses on improving clothes delivery instantly so as
to reduce the time taken for process of washing clothes. Organization focuses on adopting new
departments to check the quality of washing which helps to minimize the issues in near future. It
is concluded that improving quality of laundry and dry wash cleaning provides effective in
process performance of mywash.in. Regular and systematic training of staff in order to improve
staff knowledge in customer service, introduction of cutting-edge IT software to enable the
mywash.in processes and provision of logistics or resources (computers, stable internet
connectivity, mobile phones and people) for use in the right quantities, place and time.
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2.
CHAPTER - II
INDUSTRY/SECTOR PROFILE
pg. 3
3.
INDUSTRY/SECTOR PROFILE
3.
3 MAJOR PLAYERS
Company
Chamak Direct
Laundry 24
Rapidwash
Fabrisure
Washkart
Fabfresh
Oneclickwash
pg. 5
Logo
3.
Laundry wala
Ironwala
4 REGULATORY FRAMEWORK
The companys regulatory framework has major 4 departments.
1
HR DEPARTMENT
According to Edward Flippo, Personal Management is the planning organizing; directing
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3.
MARKETING DEPARTMENT
According to the American Marketing Association, Marketing is the process of planning
and executing the conception, pricing, promotion and distribution of ideas, goods and services to
create exchanges that satisfy individual and organizational objectives.
Responding to the new market dynamics created by the global downturn, MyWash has
identified five strategic as listed below.
Transformational deals
Large outsourcing deals
New engagement models
Execution
Talent management
three sections
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3.
FINANCE DEPARTMENT
MyWash finance function covers both acquisitions of funds as well as their optimal
allocation in various sources. The responsibility of finances managers are spread through the
organization in the sense that financial management is to an extent an integral part of the job for
managers involved in planning, allocation of resources and control. Financial management is
highly specialized in nature and is handled specialist. The job of the chief financial executive
does not cover only routine aspects of finance and accenting. As a member of the top
management, they are closely associated with the formulation of policies as well as decision
making.
MyWash is having different Financial Planning which is described as under
pg. 8
3.
pg. 9
4.
CHAPTER - III
ORGANIZATIONAL PROFILE AND BUSINESS
OVERVIEW
pg. 10
5.
pg. 11
5.
3 MAJOR CUSTOMERS
MyWash is online laundry services which serves customers across Bangalore locations.
Majority of the company customers are working professionals who are extremely busy with their
professional lives and care a great deal about their clothes. The interesting trend is that only 70
percent are singles, 30 percent of our orders come from married folks. The company is getting
great responses from premium folks in Bengaluru, who are getting their Wedding Dress, Suits,
Blazers, Sofa Covers, Quilts and winter clothing dry cleaned through the company. This segment
is contributing significantly to our average order size which is in high triple digits.
4 FINANCIAL PERFORMANCE
As of Nov 2014,the company covered entire Bengaluru and growing at 50 percent weekon-week. The company has more than 1000 signups and over 250 orders, they are doing about 10
orders consistently every day with few days (weekends) hitting 20-25 i.e. about 80 orders a week
on average. In their first month they marked 400 orders, and Koramangala concluded 30 percent
of those orders.
5 ACHEIVEMENTS
The company USP is the convenience that they provide. Anyone can get the laundry
picked up or delivered at the time and location of their choice. This is what makes them standout.
Apart from this their service is extremely fast. They have delivered almost 70 percent of the
orders within 24 hrs (even though they did not exclusively promise that).
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5.
6 ORGANOGRAM
The organization structure is shown below.
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5.
7 FUNCTIONAL OVERVIEW
MyWash has below functional process.
5.
time scheduling. A MyWash agent will arrive at the time customer scheduled to pick up customer
laundry and dry cleaning, and within about 48 hours customer clothes are delivered in reusable
eco-friendly non-plastic bags, washed and Ironed. Company pricing starts at 19 Rs per cloth and
goes upward. The company is currently giving Rs 100 off on every order above Rs 200 worth.
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6.
CHAPTER - IV
OUTLINE OF PROBLEM/TASK UNDERTAKEN
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7.
pg. 17
8.
CHAPTER V
LITERATURE REVIEW
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9.
LITERATURE REVIEW
Building relationships and learning from customers is profitable to the company. The
average company spends six times more to get a new customer than it does to hold a current one
(Rosenberg, Czepiel 1983). The longer customers are retained by a company, the more profitable
they become because of increased purchases, reduced operating costs, referrals, price premiums,
and reduced customer acquisition costs (Reichheld, Sasser Jr. 1990).
Learning from customers enables a company to develop more personalized and
collaborative interactions and to increase the value of the customer base (Peppers, Rogers 2004,
Humphreys et al. 2009).
CRM relates to strategy managing the dual-creation of value, the intelligent use of data
and technology, the acquisition of customer knowledge and the application of this knowledge to
appropriate stakeholders, to develop appropriate relationships with specific customers and to
integrate processes across many areas of the firm and across the network of firms that collaborate
to generate value (Harker, Egan 2006, Payne, Frow 2006, Kim, Suh & Hwang 2003, Reinartz,
Krafft& Hoyer 2004, Kim, Kim 2009, Hsin 2007, Tamoinien, Jasilionien 2007).
CRM can be strategically embedded within either customer intimacy or operational
excellence strategy or then with tactical implementation, without specific strategic background
(Langerak, Verhoef 2003, Iriana, Buttle 2006, Peppers, Rogers 2004).
Payne and Frow (2005) gave a definition as CRM is a strategic approach that is
concerned with creating improved shareholder value through development of appropriate
relationships with key customers and customer segments. CRM unites the potential of
relationship marketing strategies and IT to create profitable, long-term relationships with
customers and other key stakeholders. CRM provides enhanced opportunities to use data and
information to both understand customers and co-create value with them. This requires a crossfunctional integration of processes, people, operations and marketing capabilities that is enabled
through information, technology and applications. The foregoing approach to the definition of
CRM combines both the marketing and the information technological (IT) views to CRM.
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9.
Couldwell 1998, defining CRM from the marketing perspective, had this to say that combination
of business process and technology that seeks to understand a companys customers from the
perspective of who they are, what they do and what they are like. It is clear from the above
definitions that CRM is a multi-faceted approach made up of four (4) broad segments including
Key Customer Focus, CRM Organization, Knowledge Management and Technology-based
CRM. This is an indication that successful CRM implies focusing on areas such as strategy;
people; technology and processes (Fox and Stead, 2001).
It is when these four elements work in tandem that a customer relating capability can
result (Day, 2003). Value addition to both the organization and the customer is one of the cardinal
aims of CRM. To achieve this, Kwame Dzato (2007) noted that the CRM strategy of any
financial services organization needs to focus on integrating people, processes and technology to
maximize the value exchange. Kwame Dzatos position was corroborated by Bee (2008) and
Bygstad (2002). While Bee indicated that financial institutions who want to adopt CRM systems
need to address three critical factors people, processes and technology, Bygstad citing Ciborra
and Failla (2000), simply described CRM as an information infrastructure that consists of people,
processes and technology.
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9.
People process and technology are three pillars of CRM Process. People represents the
team in organization who are required to be dedicated, motivated and proactive. Process defines
the flow of activity. The importance of process that it makes organization people independent.
Technology adds value to the process and hence gives power to people in the organization. It
helps to serve customers in faster and better way.
BENEFITS OF CRM
Benefits embedded in the effective and efficient practice of CRM initiatives. These
benefits are grouped into three (3) categories:
Customer satisfaction
Customer retention
Revenue enhancement (Zablah et al, 2004)
Satisfied customers tend to be loyal to their service providers as well as buy more and are
willing to pay a premium for services and products.
Cost savings and cost reduction: Costs will decline and profitability will increase because
of greater efficiencies, visibility and control (LaValle and Scheld, 2004)
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10.
CHAPTER VI
OBJECTIVES AND SCOPE OF PROJECT
pg. 22
11.
mywash.in
To Study the customer service and support of mywash.in in Bengaluru
To improve channel management and to develop the service quality of mywash.in
To study the customer retention rate of mywash.in
To Measure the supply chain and logistics function of collecting materials from customers
To Analyze the sustainable relationship with the customers of mywash.in
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12.
CHAPTER VII
RESEARCH METHODOLOGY
pg. 24
13.
RESEARCH METHODOLOGY
pg. 25
13.
2 SEQUENCING OF ACTIVITIES
The process followed in this research is depicted through below flow diagram.
activities, as shown through I to VII. This research is based on the flow chart and strictly
followed the prescribed sequence. The following order has followed because it provides a useful
procedural guideline regarding the research process: (1) formulating the research problem; (2)
extensive literature survey; (3) developing the hypothesis; (4) preparing the research design; (5)
determining sample design; (6) collecting the data; (7) execution of the project; (8) analysis of
data; (9) hypothesis testing; (10) generalizations and interpretation, and (11) preparation of the
report or presentation of the results, i.e., formal write-up of conclusions reached.
3 RESEARCH DESIGN
A research design is the conceptual structure within which research is conducted, it
constitutes the blueprint for the collection, measurement and analysis of data.
The type of research that will be used in this project will be descriptive in nature.
Descriptive research is a description of the state of affairs, as it exists at the present. The main
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13.
characteristics of this type of research is that the researcher has no control over the variables, he
can only report what has happened or what is happening.
4 SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given population.
It refers to the technique or the procedure the researcher would adopt in selecting items for the
sample.
1
SAMPLING TECHNIQUE
The sampling technique adopted for the study was non-probability sampling. The
respondents were chosen on the basis of Convenience sampling. The reason why this sampling
method will be used is because of the time constraints, lack of knowledge about the entire
universe and the main reason being that it will not be easy to collect the data from all the
employees who worked on this project.
2
SAMPLING FRAME
A sampling frame is simply the list of the study sample. In this research study the
SAMPLE SIZE
The survey is estimated to be conducted among 110 employees.
Primary data are those that are collected for the first time and thus they are found to be
original in character. The primary data to be used for this project will be collected using a
structured questionnaire which was a combination of 5 point rating scale questions. The data is to
be collected from the employees of mywash.in
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13.
SECONDARY DATA
Secondary data includes data which exists already and are directly applied for the study.
Secondary data will collected with the help of websites, journals and also through personal
discussion with the employees.
pg. 28
14.
CHAPTER VIII
ANALYSIS AND FINDINGS
pg. 29
15.
1 DATA ANALYSIS
This section should contain a logical presentation of the empirical results after
completing the data analysis. This should contain neatly tabulated results, results of hypotheses
tested, graphs and figures, if any, along with necessary interpretation. A comparison of results
with earlier studies may add novelty to the work. A detailed discussion on the basis of results of
analysis should be given in this section.
1
AGE OF RESPONDENTS
TABLE 9.1.1
AGE OF RESPONDENTS
PARTICULARS
25 30 Years
30 35 Years
35 40 Years
40 45 Years
Above 45 Years
TOTAL
NO OF RESPONDENTS
PERCENTAGE
15
25
33
27
10
110
14
23
30
24
9
110
pg. 30
15.
AGE OF RESPONDENTS
35
30
25
20
NO OF RESPONDENTS
15
10
5
0
pg. 31
16.
GENDER OF RESPONDENTS
TABLE 9.1.2
GENDER OF RESPONDENTS
PARTICULARS
Male
Female
TOTAL
NO OF RESPONDENTS
PERCENTAGE
55
55
110
50
50
100
GENDER OF RESPONDENTS
Female; 50%
Male; 50%
pg. 32
17.
EDUCATION OF RESPONDENTS
TABLE 9.1.3
EDUCATION OF RESPONDENTS
PARTICULARS
NO OF RESPONDENTS
PERCENTAGE
Graduation
Post-graduation
Professional qualification
Diploma holders
Others
15
25
33
27
10
110
14
23
30
24
9
100
TOTAL
Source: Primary Data
EDUCATION OF RESPONDENTS
Others; 9% Graduation; 14%
Diploma holders; 25%
pg. 33
18.
DELIVERY OF CLOTHES
TABLE 9.1.4
DELIVERY OF CLOTHES
PARTICULARS
Strongly Agree
Agree
Neither agree nor
disagree
Disagree
Strongly Disagree
TOTAL
NO OF RESPONDENTS
PERCENTAGE
45
25
10
41
23
9
17
13
110
15
12
100
45
40
35
30
25
20
15
10
5
0
pg. 34
18.
TABLE 9.1.5
RECEIVING WASHED CLOTHES FROM MYWASH.IN
PARTICULARS
Below 3 days
3 days to 4 days
Above 4 days
TOTAL
NO OF RESPONDENTS
PERCENTAGE
85
15
10
110
77
14
9
100
Above 4 days; 9%
3 days to 4 days; 14%
pg. 35
19.
PARTICULARS
Strongly Agree
Agree
Neither agree nor
NO OF RESPONDENTS
PERCENTAGE
23
34
20
21
31
18
15
18
110
14
16
100
disagree
Disagree
Strongly disagree
TOTAL
Source: Primary Data
Agree; 31%
TABLE 9.1.6 shows that 31% of respondents agree, 21% of strongly agree that
mywash.in delivers clothes as per schedule whereas 18% of neither agree nor disagree, 16% of
strongly disagree and 14% of disagree that they delivers clothes as per schedule. Therefore, it
pg. 36
19.
concludes that maximum number of respondents agree that mywash.in delivers clothes as per
schedule.
pg. 37
20.
DEFECTS IN CLOTHES
TABLE 9.1.7
DEFECTS IN CLOTHES
PARTICULARS
Strongly Agree
Agree
Neither agree nor
NO OF RESPONDENTS
PERCENTAGE
14
16
13
13
14
12
45
22
110
41
20
100
disagree
Disagree
Strongly disagree
TOTAL
Source: Primary Data
DEFECTS IN CLOTHES
50
45
40
35
30
25
20
15
10
5
0
NO OF RESPONDENTS
pg. 38
21.
PARTICULARS
Nil
One time
1 time to 2 times
2 times to 3 times
Above 3 times
TOTAL
NO OF RESPONDENTS
PERCENTAGE
57
25
10
8
10
110
52
23
9
7
9
100
Above 3 times; 9%
2 times to 3 times; 7%
1 time to 2 times; 9%
Nil; 52%
pg. 39
22.
KINDS OF DEFECTS
TABLE 9.1.9
KINDS OF DEFECTS
PARTICULARS
Wrinkles
Poor washing
Tiny holes in clothes
Weak laundry
Others
TOTAL
NO OF RESPONDENTS
PERCENTAGE
34
0
44
18
14
110
31
0
40
16
13
100
KINDS OF DEFECTS
45
40
35
30
25
20
15
10
5
0
pg. 40
23.
10
PARTICULARS
Strongly Agree
Agree
Neither agree nor disagree
Disagree
Strongly Disagree
TOTAL
NO OF RESPONDENTS
PERCENTAGE
25
12
10
18
45
110
23
11
9
16
41
100
Strongly Disagree
Disagree
Neither agree nor disagree
NO OF RESPONDENTS
Agree
Strongly Agree
0 5 10 15 20 25 30 35 40 45 50
pg. 41
24.
11
LEVEL OF SATISFACTION
TABLE 9.1.11
LEVEL OF SATISFACTION
PARTICULARS
Highly satisfied
Satisfied
Neither satisfied nor
NO OF RESPONDENTS
PERCENTAGE
45
35
12
41
32
11
14
4
110
12
4
100
dissatisfied
Dissatisfied
Highly Dissatisfied
TOTAL
Source: Primary Data
13%
Satisfied
Dissatisfied
4%
41%
11%
32%
pg. 42
24.
highly dissatisfied with the services of mywash.in. Hence, it is clearly depicted that majority of
respondents are highly satisfied with the services of mywash.in.
pg. 43
25.
1.1.
SWOT ANALYSIS
The quality or state of being strong. We offer a door to door service for dry cleaning and
laundry providing another choice for customers. Visit offices, work places and corporate
organizations and let them know the type of services you offer.
QUICK AND CONVENIENT
We offer a quick and convenient service in order to save a customers time. It is a very
lucrative business, as not everyone that puts on clothes has the time to do the laundry involved
thereafter. Many people have a tight schedule, so they consider it a waste of time doing their
laundry. This is the reason why you stand a chance of making a lot of money because this people
will definitely seek your services. Reasonable prices
WEAKNESSES
pg. 44
25.
We are creating a new business so the cost would be higher and there will be no profit
making for several months.
2. SMALL FORM OF BUSINESS
Our business is a small form of business and if our location of the service isnt a good
place it will not be convenient for people to come and serve our service.
3. LESS EXPERIENCES
Cost of transferring for delivery service and a limited marketing budget needed to create
brand awareness and the hours of operation needed.
THREATS
OTHER COMPETITORS
Bigger laundry services and other new business that enters the business world.
Future/Potential competition from a large franchised business.
OPPORTUNITY
Laundry price is cheaper than others which help to attract more customers.
Opportunity from busy people who dont have time to do their own laundry themselves
and we can change our business location in the city area or near to the city.
Increasing number of medium and small hotels, spa shop which is good for our market
and increasing of disposable income and changing the daily lifestyles.
Relatively high rates of return on your investment are possible and large target market.
Minimal time and labour are involved and participation in a steadily growing country.
pg. 45
26.
CHAPTER IX
CONCLUSIONS AND SUGGESTIONS
pg. 46
27.
1 CONCLUSION
It is concluded that improving quality of laundry and dry wash cleaning provides
effective in process performance of mywash.in. Regular and systematic training of staff in order
to improve staff knowledge in customer service, introduction of cutting-edge IT software to
enable the mywash.in processes and provision of logistics or resources (computers, stable
internet connectivity, mobile phones and people) for use in the right quantities, place and time.
Understanding the dynamics of CRM and improving quality in wide ways helps to attain cost
benefit analysis to meet out their competitors of mywash.in. Based on observation, mywash.in
develops data quality, delivery agents to receive clothes on time, adopt latest technology and
finding ways of extending business to other areas which helps to meet the needs of other area
people in Bangalore. This reveals that improving customer satisfaction rates and establishing
relationship with the customers are of major importance to increase value of mywash.in. In the
eyes of public.
2 SUGGESTION
It is suggested from mywash.in that the practice of CRM have been identified as
customer satisfaction and customer retention, profitability and strong brand to be the best in
Bengaluru. Some of the factors which affect mywash.in include delay in service delivery, defects
in washing and defective clothes returns at the time of delivery. Mywash.in focus on improving
clothes delivery instantly so as to reduce the time taken for process of washing clothes.
Organization focuses on adopting new departments to check the quality of washing which helps
to minimize the issues in near future.
pg. 47
28.
CHAPTER X
KEY LEARNINGS AND CONTRIBUTION TO THE
ORGANISATION
pg. 48
29.
10
pg. 49
30.
BIBLIOGRAPHY/ REFERENCES
pg. 50
31.
11
BIBLIOGRAPHY / REFERENCES
1. Aaker, D.A. & Day, G.S. (1990), Marketing Research, 4 th Ed. New York: John Wiley & Sons,
Inc.
2. Bibiano, L. H. Mayol, E. and Pastor, J. A. (2005), Role and importance of business processes
in the implementation of CRM systems
3. Burnett, K (2001), Handbook of key customer relationship management: The definitive guide
to winning, managing and developing key account business, New Jersey: Prentice Hall
4. Chaston, I (2001), e-marketing strategy, England: Mc-Graw Hill
5. Cooper, D.R. and Schindler P.S. (2006), Business research methods, 9th Ed. McGraw-Hill
6. Fox, T. and Stead, S. (2001), Customer Relationship Management: Delivering the benefits,
White Paper, CRM (UK) and SECOR Consulting, New Malden.
7. Payne A. and Frow P. (2005) A Strategic Framework for Customer Relationship
Management, Journal of Marketing, Vol. 69 No 4, pp. 167-176
8. Saunders, M., Lewis P. and Thornhill, A. (2003), Research methods for business students,
Pearson Education Limited.
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32.
ANNEXURES
pg. 52
33.
12
ANNUXTURE
GLOSSARY
Abbreviation
CRM
Meaning
Customer Relationship Management
33.
pg. 54